Good signs about buyer demand

Remember the human element

When it comes to a listing appointment, we always strive to do one thing above all else: humanize the conversation. We make sure to start with these two questions: 1) Why are you selling your home? 2) Where are you moving?

We know this may seem obvious, but sometimes agents can get so focused on the outcome of making money and providing a good service that they forget to start with the basics. Asking those two simple questions is the best way to understand where your potential clients are coming from, and where they’re going.

With the rise of iBuying and the emergence of proptech, it’s crucial to remember that the human element is something that tech can’t replicate (at least not yet!) The more we get to know our clients, the better we can tailor our services to what they need.

On that note, here’s our service to you–the latest edition of The Blueprint. Enjoy!

- James and David

Buyer demand is outpacing housing inventory

Low housing inventory is making some U.S. markets feel like sellers' markets despite fewer sales, according to a new Redfin report that surveyed the four-week period ending April 2nd.

Here are the main takeaways:

• New listings dropped 21.8% YoY, contributing to an unusual decline in the number of homes for sale and more buyer competition.

• The seasonally-adjusted Redfin Homebuyer Demand Index hit its highest level since September, up 6% from last month.

• Google searches for “homes for sale” were up about 44% from the low they hit in December.

• Home touring activity was up about 20% from the start of the year.

Our take

Take this as good news, no matter what you’re seeing in your market. Buyer demand is there, and people are willing to buy homes regardless of inflation and interest rates. This isn’t a time to get caught up in the macro climate–it’s time to generate your own leads. Do the work. Go knock on doors, call people, and start to network in any way possible. There is money to be made if you can be creative in finding those solutions!

Major MLS collaboration has launched

The groundbreaking MLS collaboration REdistribute launched last Wednesday with the goal of monetizing MLS data and providing users with the most accurate, up-to-date property information.

Here’s what you need to know:

• Currently, it covers 10 states and DC, but it expects to have 55-60% of national listing coverage soon.

• It is intended to help mortgage and insurance companies make better valuation and risk management decisions.

• Revenue from the sale of data collected will be shared with participating MLSs.

Our take

We really believe that our industry is better when more people share information. More information makes us all better agents and lets us show prospective clients how we can help them. REdistribute is in its infancy, and we will keep our eye on it. We look forward to seeing what happens when it becomes available to a wider section of the country. Every agent should watch out to see what happens, but we will be sure to tell you first!

The 10 best metros for homebuyers right now

Neighborhood ranking site Niche released a list of the top cities where it’s best to buy a home in 2023. The site compared housing costs versus incomes, public school quality, and cost of living metrics.

Here are the top 10 cities for homebuyers:

1. The Woodlands, TX

2. Overland Park, KS

3. Naperville, IL

4. Rochester, MN

5. Huntsville, AL

6. Sioux Falls, SD

7. Fort Wayne, IN

8. Plano, TX

9. Columbia, MD

10. Lexington, KY

Our take

If you’re struggling to get your footing in a market adjacent to one of these top cities, it’s definitely worth exploring if you can work here. These metrics are important ones that our buyers are always thinking about. When we were first starting out, this is definitely a list we’d consider looking at. In fact, had the numbers been the same, we probably would’ve been writing to you from Texas right now!

Schematics

The news that just missed the cut

• 3 expert tips for buyers navigating this spring's market

• Agents share the pettiest things that killed a deal

• These programs are gold mines for first-time buyers

• Zillow has agreed to a $15M settlement with shareholders

Foundation Plans

Advice from James and David to win the day

In our intro, we talked about the importance of the human touch. What you say and how you say it matters more than ever to prospective clients. They want to know that you've got their best interest in mind and that you're willing to go the extra mile to get them the best possible deal in this uncertain market.

Here are three tips from Broke Agent for talking to your clients:

1. Avoid "commission breath." There's a lot of uncertainty right now, but some agents will still say that it's always a good time to buy. Canned lines like this will lose clients who feel like their concerns aren't being heard. Instead, share the data and numbers, and help potential buyers make the right decision for them.

2. Learn which sellers are serious. There will always be market fluctuations, but agents should still avoid saying empty lines like "It's always a great time to sell!" Be direct with your sellers and explain the data and exactly what is happening in the market right now. When you present this with certainty, you will sell houses!

3. Be a wealth of knowledge. Buyers and sellers want to work with agents who show that they know their stuff and are experts on their local area. Do your homework so you are prepared to help your clients have the best home-selling or buying process possible!

Want to learn more about communicating with your clients? Click to read the article.

Q&A

You ask, James and David answer!

Just in Case

Keep the latest industry data in your back pocket with today’s mortgage rates:

That’s all for today’s Blueprint!

Remember: proptech can’t replicate the personal touch and local expertise you can offer your clients. Get out there this week, ask the right questions, show clients your value, and we’ll see you back here on Friday.

Have a great week!

- James and David